The Role of ICT in
Reducing Carbon
Emissions in the UK
Contents
Executive Summary
3
UK Climate Change Act
4
Meeting the Fourth Carbon Budget
4
ICT’s Carbon Reduction Potential
5
UK ICT Carbon Reductions
7
Additional Benefits of ICT
9
BT’s Commitment
11
The Way Forward
14
Post Script
16
Methodology and Assumptions
17
Acknowledgements
BT would like to thank Accenture Strategy who have undertaken the
analysis for this report.
Contact Information
BT
[email protected]
http://www.bt.com/purposefulbusiness
@BTBetterFuture
Accenture Strategy
https://www.accenture.com/gb-en/strategy-index.aspx
@AccentureStrat
2
Executive Summary
Background
Key Findings
Recommendations
The UK Government has set ambitious
targets to cut the UK’s annual carbon
emissions by 50 per cent by 2030 and
80 per cent by 2050, as part of the
global initiative to tackle climate change.
The ICT sector in the UK could not only
help meet emission reduction targets,
but also deliver significant economic
benefits in terms of new revenue
generation and cost savings.
To date, the carbon abatement measures
in the UK Carbon strategy have not
yet taken the full potential of ICT
into account.
The research looked at what ICT could
enable in 2030 and found:
The findings show the ICT sector
should not be overlooked when
considering the decarbonisation of
the UK’s economy and that it can also
deliver broader environmental and
socio-economic benefits.
•A 24% reduction in UK carbon
emissions annually, equivalent to
taking 26m passenger cars off the road2, 3
•This saving will be 12 times
the carbon footprint of the
ICT sector itself
•An additional £122 billion in
sustainable economic benefits
annually, comprising £58.5 billion
in additional ICT and stakeholder
revenues and £63.5 billion in cost
saving opportunities4
BT recognises its role in this journey and
embraces the opportunity to leverage
its network, products and services
to help the Government tackle and
achieve its carbon targets and drive
positive change.
This study aims to raise awareness of
the possibilities of deploying smart
technologies, how their deployment may
be supported and case study examples
from within BT of how environmental,
economic and social benefits are already
being realised.
•Socio-economic benefits for
the entire economy – e-Learning
opportunities will generate an
additional income of £13 billion while
e-Health will generate over £1.3 billion
in space savings, and enhanced health
services will be available to 19.9
million people across the country5
Updated Energy and Emissions Projections 2015, Department of Energy and Climate Change available here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/477698/Updated_ener
gy_and_emissions_projections_2015.pdf
1
Accenture Strategy worked with the Global e-Sustainability Initiative (GeSI) to develop the SMARTer2030 report. GeSI is a leading source of impartial information, and collaborates with its members from major ICT companies and organisations, to provide resources and best practices for achieving integrated social and environmental sustainability through ICT. Over 30 major ICT companies, including BT, are members. The report is available here: http://smarter2030.gesi.org/
2
3
2030 carbon projections based on CCC analysis and carbon reductions calculated using: http://www3.epa.gov/otaq/climate/documents/420f14040a.pdf
4
GeSI SMARTer2030 report
5
GeSI SMARTer2030 report
3
UK Climate Change Act
The United Nations Framework
Convention on Climate Change
(UNFCCC) is an international
environmental treaty which was
negotiated at the United Nations
Conference on Environment and
Development (UNCED) in 1992. This
treaty has the objective to ‘stabilize
greenhouse gas concentrations in
the atmosphere at a level that would
prevent dangerous anthropogenic
interference with the climate system’6.
Parties of the UNFCCC have agreed that
emissions should be reduced so as to
limit the global increase in temperature
to a maximum of 2°C above preindustrial levels.
The UK, as part of the UNFCCC, has
taken a global leadership role in the
urgent collective action to tackle climate
change. As the first country to introduce
legally-binding targets7, through the
2008 Climate Change Act, the UK has
been at the forefront of global action
and has set itself a clear framework to
develop an emissions reduction strategy
that is both viable and credible.
Through the Climate Change Act, the UK
committed to reducing its annual carbon
emissions by at least 80 per cent in 2050
from 1990 levels. The Act also requires
Her Majesty’s Government (HMG) to set
legally binding ‘carbon budgets’ which
define the maximum greenhouse gas
(GHG) emissions over each five year
period between 2008 and 2050.
The Committee on Climate Change (CCC)
was established to develop these carbon
budgets and analyses. The CCC sits
outside Governmental and Parliamentary
cycles, which helps it to take a nonpolitical, longer term view and enables
it to to advise the Government on
emissions targets and report to
Parliament on progress made.
the Second Carbon Budget period (20132017) and is on track to meet
the Second and the Third Carbon
Budgets. This progress is described
below in Table 18.
Alongside the carbon budgets, the CCC
defines a ‘cost effective pathway’ which
outlines the most commercially and
technologically feasible pathway to meet
the budget.
Meeting the Fourth
Carbon Budget
The UK government is currently deciding
policies to meet the Fourth Carbon
Budget. Based on current calculations
by the UK Government, there is a gap to
meet the Fourth Carbon Budget of 187
Mt CO2e9.
The first four carbon budgets, covering
the period from 2008 to 2027, were
written into law. The UK is currently in
Table 1. UK Carbon Budgets and Progress
Budget
Carbon Budget Level
% Reduction Below 1990
Estimated / Actual Progress*10
First Carbon Budget (2008-12)
3,018 Mt CO2e
23%
- 36 Mt CO2e (actual)
Second Carbon Budget (2013-17)
2,783 Mt CO2e
29%
- 60 Mt CO2e (estimated projection)
Third Carbon Budget (2018-22)
2,544 Mt CO2e
35% by 2020
- 51 Mt CO2e (estimated projection)
Fourth Carbon Budget (2023-27)
1,950 Mt CO2e
50% by 2025
- 187 Mt CO2e (estimated projection)
Fifth Carbon Budget (2028-2032)
1,765 Mt CO2e
57% by 2030
(Not yet determined)
* = negative figure denotes Carbon Budget was achieved / projected
This gap has been identified and
calculated by the CCC and Department
for Energy and Climate Change (DECC)
6
http://unfccc.int/essential_background/convention/items/6036.php
7
Committee on Climate Change available here: https://www.theccc.org.uk/tackling-climate-change/the-legal-landscape/global-action-on-climate-change/
8
Committee on Climate Change available here: https://www.theccc.org.uk/tackling-climate-change/reducing-carbon-emissions/carbon-budgets-and-targets/
9
Updated Energy and Emissions Projections 2015, Department of Energy and Climate Change
10
11
4
and is based on predicted baseline
emissions11 and predicted reductions
through policy measures.
Updated Energy and Emissions Projections 2015, Department of Energy and Climate Change
Based on the most recent DECC analysis, 2015
Figure 1: UK Carbon Emissions and Projections (2012-2027)
UK Carbon Emissions and ProjecBons 700 600 Mt CO2e 500 400 300 200 100 -­‐ 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Year OuDurn Emissions Baseline emissions At-­‐risk policies Cost-­‐effecBve path The UK’s projected carbon reduction
pathway is shown in Figure 1. The
graph shows the trajectory for UK
baseline emissions7 up to 2027 (pink),
the estimated reduction pathway taking
into account the impact of lower-risk
(orange) and at-risk policies (yellow)
over time. The cost-effective pathway is
shown in purple.
The CCC suggests that the identified gap
to meeting the Fourth Carbon Budget
of 187 Mt CO2e is mainly a result of
supporting policies which will expire or
lose funding during the 2020s. The CCC
has therefore recommended increased
clarity over longer term horizons and
greater investments into infrastructure
and technology measures – these points
form the basis of their recommendations
to Parliament.
However, current recommendations and
UK policies do not fully take into account,
or explicitly point to, the enabling role
of ICT and how the sector can enable
significant emissions reductions. The
UK Carbon Strategy does point to the
inclusion of increased renewable energy
on the grid and grid flexibility, however
does not include ICT’s full potential.
Carbon budgets and the guidance towards
achieving the cost-effective pathway, are
written 12 years in advance, so it is to be
expected that the potential of ICT was
relatively unknown when the first four
carbon budgets were written into law.
Given the potential of ICT to play a greater
enabling role, in addition to the current
policies and interventions, there is an
opportunity to help the UK to fill the
identified gap and achieve its targets for
2030 and beyond.
ICT’s Carbon
Reduction Potential
The Global eSustainability
Initative’s (GeSI) most recent report,
SMARTer203012, analysed 12 ICT use
cases and supporting case studies to
quantify the potential of ICT to reduce
global carbon emissions as well as
deliver significant economic benefits.
The key findings were as follows:
• ICT has the potential to enable a
20% reduction in global CO2
emissions by 2030, holding
emissions at 2015 levels
and therefore effectively decoupling
economic growth from emissions
growth. Together, the use cases could
enable over 12 Gt CO2e in reductions
in 2030 globally – 22 times the current
level of UK carbon emissions13
• Emissions avoided worldwide
through the use of ICT are nearly
ten times greater than the emissions
generated by deploying it by 2030. ICT
emissions as a per centage of global
emissions will decrease over time, with
Emissions with lower-­‐risk policies research showing that the ICT sector’s
emissions ‘footprint’ is expected to
decrease to 1.97% of global emissions
by 2030, compared to 2.3% in 2020
• ICT could generate over £7.2 trillion
in economic benefits per year by
2030, based on an assessment of
eight key economic sectors
Figure 2 describes each use case and
the ways in which each can reduce
emissions, while Figure 3 (page 7)
shows the total breakdown, by use
case, of carbon abatement. The growing
potential of ICT is being driven by
greater adoption rates of smartphones
and internet-enabled devices, as well
as greater access to broadband around
the world.
In addition to carbon abatement, these
use cases offer potential revenue uplifts
for the global ICT sector of £1 trillion
GBP in 203014. Beyond the ICT sector,
external stakeholders could benefit
from cost savings and additional
revenues totalling £6.2 trillion. These
new revenue streams will be generated
from connecting the unconnected across
the world, and through delivering new
services and products such as wearables
and increased use of sensor technology.
Cost savings (nearly £3.3 trillion in
2030), could be generated from reduced
electricity expenditure, reduced fuel
costs and other resource efficiencies
(water, paper etc.).
GeSI SMARTer2030 report
12
Updated Energy and Emissions Projections 2014, Department of Energy and Climate Change
13
GeSI SMARTer2030 report
14
5
Figure 2: SMARTer2030 Use Case Descriptions
Smart Manufacturing
Smart Agriculture
• Smart Agriculture stands for the efficient farming and agriculture methods (excluding marine agriculture)
that involve the use of ICT such as GPS and intelligent sensors
• Carbon reduction enabled through energy efficiency measures, a reduction in fertilizers used, improved
manure management and efficient enteric fermentation and rice cultivation
Smart Buildings
• Smart Buildings is the combination of specific building software and remote controls that lead to intelligent
homes and workplaces. Its main pillars are: energy management for households through automatic detection
and energy storage, improved buildings efficiencies and the combination of sensors and Machine-toMachine communication (the Internet of Things)
• Carbon reduction through decreased energy consumption in households and commercial buildings
Smart Energy
• Smart Energy is connecting energy supply to current demand using more efficient networks and encompasses
three areas: dynamic demand management (supply and demand), improvement of grid services and
decarbonisation from the integration of renewable energies to a smart grid
• Carbon reduction through decrease in energy production due to decreased demand, increase in renewable
energy, and improved grid efficiencies
Smart Logistics
• Smart Logistics are the improvements leveraged from ICT that result in an optimisation of distribution
activities, reduction in distance travelled etc.
• Carbon reduced through decrease in air, train, maritime and road freight through maximisation of vehicle
capacity and logistics sharing
Traffic Control
and Optimisation
• Traffic Control and Optimisation seeks to manage traffic and parking in cities in a smarter, efficient and more
fluent way, through intelligent sensors and connected cars
• Carbon is reduced through increased use of efficient routes (reduced distance driven), increased efficiency of
personal vehicles, and increased use of public transport
Connected
Private
Transportation
• Connected Private Transportation refers to connecting vehicles to help stimulate car sharing and route
sharing, reducing the usage of cars overall
• Carbon is reduced through route sharing, car sharing (decrease in travel) and associated reduction in
car production
E-Work
• E-Work is the use of cloud platforms, connections and communicating devices to facilitate daily office work
between people based at different locations
• Carbon is reduced through lower levels of commuting (less personal transport) and decrease in business trips
by car and airplane
E-Commerce
6
• Smart Manufacturing is the intensified application of advanced intelligence systems which includes use
of ICT to increase knowledge around inefficiencies, and enabling rapid manufacturing of new products,
dynamic responses to product demand and real time optimisation of manufacturing production and
supply chain networks
• Carbon reduction through improved process automation and engine optimisation
• E-Commerce is the improvement of current platforms and connections that make possible online commerce
/ trading of products or services using internet networks between retailers and consumers
• Carbon is reduced through increased online shopping, requiring fewer trips to shops and lower
fuel consumption
E-Health
• E-Health is the provision of health resources and care using ICT means and encompasses three areas: delivery
of information for professionals and consumers, improving public health services (eg: education and training
of health works) and enabling patients to manage their own health
• Carbon is reduced through a fall in patient transport used, as well as decreased space used in hospitals
and clinics
E-Learning
• E-Learning is the deployment of computerised devices in educational and learning environments, promoting
valuable interactive lessons. Its main pillars are: building partnerships with quality training providers and
offering wider educational horizons by offering new accessible learning content
• Carbon is reduced through reduction in transport required in secondary and higher education and
company travel for training purposes
E-Banking
• E-Banking refers to providing banking products and services through electronic delivery channels, such as
internet or mobile banking
• Carbon is reduced through few consumer trips required to the bank and reduction in employees employed
by banks
Figure 3: SMARer2030 Use Case Carbon Abatement Potential (Gt CO2e, 2030)
These ICT-enabled carbon abatement
and social and economic benefits are
also applicable to the UK. These benefits
and the opportunity that ICT provides
to the UK are particularly relevant as
the application of ICT to this challenge
provides a clear incentive to embrace
ICT to get closer to the 2030 emissions
reduction target.
To date, HMG and CCC’s
recommendations have not explicitly
called out the potential for ICT to
enable carbon reductions in the UK,
with the exception of the integration
with renewables and increased grid
flexibility under the ‘Secure, Low
Carbon Electricity’ UK Carbon Strategy
sector (described in further detail
below). This means that all ICT-enabled
carbon abatement measures from the
SMARTer2030 report, except for the
Smart Energy use case, are additive and
not duplicative of the current policies
and recommendations within DECC’s or
CCC’s recommendations.
UK ICT Carbon Reductions
Using the data from the SMARTer2030
report, it is estimated that ICT-enabled
carbon abatement could help to shrink
the UK’s identified gap of 187 Mt CO2e by
121.7 Mt CO2e, a reduction equivalent of
65 per cent, helping the UK to meet the
Fourth Carbon Budget. This 122 Mt CO2e
reduction is equivalent to reducing the
UK’s current carbon emissions by 24 per
cent in15 2030, or taking 26m cars off the
road16. Therefore in 2030, the emissions
avoided through the use of ICT will be
12 times greater than the emissions
generated by deploying it17.
The total potential carbon abatement
enabled through ICT has been mapped to
HMG’s Carbon Strategy below in Figure
4. The strategy focuses on six sectors
and is derived directly from the CCC’s
carbon budgets and recommendations.
SMARTer2030 uses cases have been
mapped to each sector in terms of focus
(see Table 2)18. It should be noted that
the Smart Energy use case closely maps
to the ‘Secure, Low-Carbon Electricity’
UK carbon sector and has therefore
not been counted as additional carbon
abatement potential. Carbon abatement
through increased grid-connected
renewables and grid efficiencies are
already accounted for within projected
UK carbon reductions. The use cases
within each Carbon Strategy sector are
defined in terms of their description,
applicability and carbon abatement
levers further below. It is important
to note that ICT can enable further
reductions in nearly all UK Carbon
Strategy sectors, as it acts as an
underlying enabler for each which
helps demonstrate its potential for
deep cross-sector ICT-enabled
carbon reductions.
Updated Energy and Emissions Projections 2015, Department of Energy and Climate Change
15
http://www3.epa.gov/otaq/climate/documents/420f14040a.pdf
16
Accenture Strategy analysis
17
There are no applicable SMARTer2030 use cases related to the UK’s Water and Resource Efficiency sector
18
7
Figure 4: Total UK ICT-Enables Carbon Abatement (Mt CO2e, 2030)
*The Smart Energy use case within SMARTer2030 has not been included within total additional carbon abatement enabled through ICT for the UK due to the
overlapping nature with existing measures and policies used within the CCC carbon budgets and recommendations
Table 2: UK Carbon Strategy Sectors Mapped to SMARTer2030 Use Cases
UK Carbon Strategy Sectors
SMARTer2030 Use Cases
Buildings
Smart Buildings
Transport
Smart Logistics
Traffic Control & Optimisation
Connected Private Transportation
Industry
Manufacturing
E-Work
E-Commerce
E-Health
E-Learning
E-Banking
Secure, Low-Carbon Electricity
Smart Energy
Agriculture, Forestry, & Land Management
Smart Agriculture
Water & Resource Efficiency
N/A
This reduction is significantly higher
than the ICT sector’s emissions as a
percentage of total emissions. The
UK ICT sector is responsible for
approximately 2.5 per cent of emissions,
which is set to decrease over time to
2.3 per cent in 2020 and further down
to 1.97 per cent in 203019. This is at
the same time when ICT can enable a
reduction of 65 per cent of the UK’s
projected gap to meet the Fourth
Carbon Budget. Additionally, ICT can
GeSI SMARTer2030
19
Accenture Strategy analysis
20
21
8
Department of Energy and Climate Change: http://www.businessgreen.com/bg/news/2401210/uk-green-economy-hit-gbp122bn-in-2013
enable £122bn in sustainable economic
benefits in the UK in 203020. This figure is
equivalent to the total size of the UK ICT
sector in 201321, clearly demonstrating the
size of the potential benefits applicable to
the UK economy.
Case Study 1: Superfast Cornwall
Superfast Cornwall and Carbon Reductions
Superfast Cornwall was funded by the EU, BT and Cornwall
Council and is supported by Broadband Delivery UK, an arm
of the UK Department of Culture, Media and Sport. The
project delivered fibre broadband to 95 per cent of homes
and businesses in Cornwall and the Scilly Isles.
To demonstrate how broadband can help enable carbon
reductions at a consumer level, the total potential carbon
savings through specific use cases have been studied
at a Cornwall level. Five use cases were considered in
Additional Benefits of ICT
As discussed, the benefits of ICT extend
beyond carbon abatement. ICT could
offer significant economic benefits to
both the UK’s ICT sector as well as other
external stakeholders.
Cornwall: telecommuting reducing travel for both business and
consumers, e-commerce, and cloud services in place of servers
at customer premises. Based on these use cases, total carbon
savings are estimated at 581,146 tonnes over the nine year
period from 2011 to 2020. This equates to an estimated annual
saving per subscriber of around one tonne of CO2 each year. In
addition, superfast broadband connections have helped boost
the economy by more than £186 million, created thousands of
jobs and saved public money. However Cornwall is not alone.
Throughout the UK, BT has been crucial to putting the UK
ahead in broadband provision. According to Ofcom’s December
2014 EU scorecard, the UK continues to lead the top five EU
economies on virtually all the key measures across coverage,
take-up, use and competition.
Among the latest developments, BT has started trials of
ultrafast G.fast broadband, which is already delivering
download speeds up to 330 megabits per second (Mbps). This
new technology will be rolled out to 10 million UK homes and
businesses by the end of 2020 and the majority of premises
within a decade. This provision of ultrafast broadband will
help continue to cut carbon reduction through the use cases
discussed within this report.
Overall in 2030, ICT could enable an
additional £122 billion in sustainable
economic benefits annually, comprising
of £58.5 billion in additional ICT and
stakeholder revenues and £63.5 billion in
cost saving opportunities22. For the UK,
it is estimated that £22 billion of these
revenues will be generated by the ICT
sector alone. This opportunity is broken
down by UK Carbon Strategy sector in
Figure 5, below.
Figure 5: Total UK ICT Enabled Revenues (2030)
Accenture Strategy analysis
22
9
However, it is not just the ICT sector
which will benefit from additional
revenues and socio-economic benefits.
An additional £36 billion in revenues
could be realised in the pursuit of
ICT-enabled, cross-industry products
and services, for example, new learning
centre revenues, higher crop yields and
remote health services23.
At the same time, ICT could also help
to drive £63.5 billion in cost savings
for external stakeholders, comprising
£10.9 billion from reduced electricity
expenditure, £6.6 billion from reduced
fuel expenditure and another £46 billion
from other savings including tuition,
water, paper, and food waste. The
breakdown of revenues generated and
costs saved within the UK across these
five sectors is shown below in Figure 6.
Figure 6: Breakdown of UK ICT-Enabled Revenue and Sost Savings
ICT could also enable socio-economic
benefits, for example, improving
incomes of UK workers through Smart
Agriculture and E-Learning. In the UK
alone, E-Learning opportunities can
increase incomes by approximately
10 per cent, generating an additional
income of £13 billion across the UK in
203024. ICT can also enable significant
social benefits within the UK. Four
Accenture Strategy analysis
23
Accenture Strategy analysis
24
10
of the use cases from SMARTer2030
(E-Working, E-Commerce, Traffic Control
and Optimisation and E-Banking) can
together help save 4 billion hours of
time. This time is saved through fewer
hours spent commuting, more efficient
route management and a decreased
need to travel to stores thanks to online
services. E-Working, defined as the
ability to work from home and for work
to be conducted across various locations,
can be enabled through cloud based
applications and services. These services
are currently offered within the UK and
are becoming increasingly popular. The
benefits are extensive and outlined in
Case Study 2 below.
Case Study 2: E-Working Solution for a Management Consultancy
E-Working Applications for a Management Consultancy
The collaboration tools introduced include audio and video
conferencing to help collaborate with colleagues and clients
and subsequently reduce travel requirements across the firm.
The use of these tools has increased effectiveness of staff
by encouraging collective / multi-site brainstorming of ideas
and timely team discussions. Externally, it has enabled
more effective communication with clients, increasing
productivity while reducing travel costs and the company’s
overall carbon footprint.
In line with other consulting firms, there has been an
on-going pressure to reduce costs, meet client demands
and optimise the performance of staff. A Management
Consulting firm employing 350 staff across 12 sites
in 9 countries is using cloud based collaboration
tools and flexible working practices to meet these
increasing demands.
BT’s Commitment
As a leading provider of communications
services and infrastructure in the UK, BT
is well-positioned to galvanise the role
of ICT in the country’s decarbonisation
roadmap. To demonstrate its
commitments towards decarbonisation,
BT launched a vision to help society live
within the constraints of our planet’s
resources through its products and
people. This vision sits alongside a 2020
ambition for BT to help their customers
reduce carbon emissions by at least
three times the end-to-end carbon
impact of BT’s business, referred to
as BT’s 3:1 ambition. This vision helps
demonstrates BT’s leadership position
Flexible working practices were also introduced to support less
rigid working hours / patterns, home working, employment of
part time workers and flexible arrangements for those returning
from maternity leave. Initially these working practices allowed
the firm to reduce staff costs and retain key personnel.
Since the economic upturn, the practices have allowed
the firm’s consultants to go to client’s offices exactly when
they’re needed. Home working specifically has improved work/
life balance as staff consultants spend less time travelling and
more on effective work. As a consequence, the firm has
reduced both travel costs and its carbon footprint.
within the UK ICT sector, whilst BT’s
2020 3:1 ambition underlines the
longevity of BT’s intended commitment
to the UK’s decarbonisation pathway.
network, or superfast broadband (for
households and SMEs)25. This equates to
approximately 67 per cent of the ‘carbon
on the table’.
BT’s network is central to the UK’s
communications network. As of May
2015, BT was halfway to achieving
its 2020 ambition, having reached a
1.5:1 ratio. Accordingly, BT has the
opportunity to play a leading role on
behalf of the ICT sector to help the
UK move towards its 2030 carbon
targets. An estimated 104.5 Mt CO2e
of UK ICT-enabled carbon abatement
opportunity will be underpinned by BT’s
network, either through its core copper
The total potential carbon abatement
that could be enabled by BT is shown
below in Figure 7, mapped to the
UK’s Carbon Strategy and associated
SMARTer2030 use cases. Details into
how these figures were calculated
can be found in the Methodology and
Assumptions section.
Accenture Strategy analysis
25
11
Figure 7: BT Enabled UK Carbon Abatement (Mt CO2e, 2030)
However, there is no need to wait
until 2030 to see the potential of ICT
in reducing carbon emissions – BT’s
network is already enabling ICT to
reduce emissions throughout the UK.
For example, working with the Open
12
University and Milton Keynes Council,
BT has delivered a Smart Parking pilot
project. The pilot provides real time
information on parking availability via
roadside displays and smartphone apps.
Smart Parking can help to reduce traffic
congestion by 50 per cent because less
driving time is required to look for a
parking space and subsequent reduction
in fuel use and vehicle emissions. More
detail on the pilot programme can be
found in Case Study 3.
Case Study 3: Smart Parking in Milton Keynes
Milton Keynes’ Smart Parking
Together with partners BT and the Open University, Milton
Keynes Council decided to accelerate its development into
a smart city by initiating a pilot project aimed at citywide
parking space optimization. Hosted by BT, the established
Beyond carbon abatement, BT’s network
is also delivering economic and societal
benefits for the UK. For example, Surrey
Police are using BT’s cloud services to
provide around the clock proactive
Milton Keynes Data Hub collects and analyses parking sensor
data sent to receivers on lampposts via innovative wireless
technologies. As one of the fastest growing cities in the UK,
Milton Keynes is now able to expand within local infrastructure
constraints by identifying free parking spaces and sending
information to roadside displays and smartphone apps to guide
vehicles towards them.
In addition to real-time information on parking availability,
the sensors also provide data on average parking duration,
allowing the city to adjust parking restrictions and better meet
customer needs. At any point in time there are about 7,000 free
parking spaces available, but without smart parking guiding
people to them, at least 12,000 more spaces will be needed by
2020. Fully deploying this ICT-enabled smart parking solution
could provide capital savings of least £105m to this city alone.
In addition to economic benefits, the solution also contributes
to 50 per cent less traffic congestion and reduced fuel use and
vehicle emissions.
service monitoring, which has cut
operational costs while maintaining core
protective services (see Case Study 4).
Humber NHS has been able to cut costs,
save time and improve patient care
using mobile solutions (see Case Study
5). These case studies give a glimpse
into the societal benefits already being
enabled by BT’s infrastructure.
Case Study 4: Surrey Police’s Increased Efficiencies
Enhancing safety and efficiency while saving money
Surrey Police has delivered substantial savings in the running of
their ICT services. However, due to diminishing returns Surrey
Police was challenged to deliver more efficiency savings whilst
the demands for new technology continued to drive end-user
demand ever higher. The ICT challenge was to deliver current
hosting services more cheaply without compromising security.
A ‘platform as a service’ developed by BT allowed Surrey Police
to create a new, secure and virtual platform in BT’s cloud. This
highly secure cloud-based solution encompasses around the
clock proactive service monitoring and protective monitoring,
which allowed the police force to enhance their operational
efficiency while generating cost savings.
13
Case Study 5: Mobile Solutions at Humber NHS
Humber NHS Foundation goes mobile
A mobile solution for Humber NHS Foundation Trust,
contracted from BT, transforms patient care and the
The way forward…
It is clear that there is a significant
opportunity for the UK ICT sector to
help move the UK closer to achieving its
carbon targets. ICT can help to cut the
projected gap in 2030 by over 65 per
cent which would put the UK in a strong
position to achieve its long-term targets.
Furthermore, the ICT sector can generate
sustainable benefits beyond carbon
reductions. The sector could enable an
additional £122 billion in sustainable
economic benefits in 2030, comprised
of £58.5 billion in additional ICT and
stakeholder revenues and £63.5 billion in
cost saving opportunities.
The benefits of ICT are significant.
However, whether all these benefits will
14
working lives of clinicians, while at the same time saving
the Trust money. The mobile solution uses an innovative
software from Belfast company, TotalMobile, to give healthcare
professionals on the move access to real-time information
where and when they need it.
The mobile healthcare technology enables staff at the Trust
to provide a range of mental health, community, learning
disability and addiction services. Via the mobile solution, the
staff are able to access patient records, view schedules and
appointments and update notes while on their rounds, using a
mobile device of their choice, such as a tablet or smartphone.
The new mobile solution ensures that clinicians have the most
up to date information at their fingertips whether in the office,
on the go or at a patient’s home. It streamlines the Trust’s
existing processes, reducing the need to return to base, saving
time, paper and money and allowing more time to be spent on
patient care.
be realised depends on the collective
action of key stakeholder groups.
Government, business leaders and
consumers hold the collective key to
unlocking the potential of ICT to
deliver these benefits. This section
briefly touches on what each of
these groups can do to move forward
to deliver results.
…for Government
Policy makers and influencers can play
a large role in helping support the ICT
sector to reach its potential to enable
further carbon reductions in the UK.
Policy makers can recognise the
increasingly large role the ICT sector
can play in helping to reduce national
carbon emissions. This recognition
and inclusion in policies and plans
will help enable the decarbonisation
potential of ICT. Specifically, this
recognition could be generated within
the Fifth Carbon Budget and associated
recommendations to Parliament.
During this year’s Conference of Parties
(COP21), the global community set
out and committed to a strong global
climate deal which limits temperature
rises to 2°C, and aims for 1.5°C. By
agreeing these international targets,
Governments have set the framework
for large scale transformation. ICT has
the potential to be a critical part of
these frameworks which can help enable
greater global carbon reductions.
Finally, the Government can continue
to raise awareness of ICT-enabled
carbon reduction initiatives and
their potential benefits from both a
national and personal perspective.
DECC is already engaging the public
through tweetathons, such as
#BackClimateAction26. These events are
an example of how ICT can be used to
help raise awareness.
…for Business Leaders
It is key that business leaders embrace
the transition to a low carbon economy.
National and international policies
and targets will affect core business
models and changing climate scenarios
will continue to increase potential
operational risks. Therefore, it is critical
that business leaders understand
this changing environment, while
understanding the role of ICT in this
transition. By developing quantified
business cases, such as this report, to
engage decision makers and secure
investment, business risk can be
minimised while opportunities to
generate new revenues and cost savings
can be leveraged.
By working with other business leaders
in the ICT sector, through organisations
like GeSI, BT has been able to explore
how ICT-enabled solutions can open up
new revenue and growth opportunities.
By looking further afield and to other
sectors, BT is engaging with other
business leaders and stakeholders to
enable these benefits to be realised.
BT has made all methodologies in its 3:1
ambition and other carbon reduction
measures publically available. This has
helped ensure that information can
be shared across multiple sectors and
business leaders can follow this lead.
…for Consumers
Consumer choice will be a main driver
of ICT adoption and will also help to
drive further investment in services and
infrastructure within the UK. To drive
the economic, social and environmental
benefits and opportunities offered by ICT,
consumers have to take an active role.
the empowered consumer can promote
the brands, platforms and services which
provide the best benefits and/or value
and push towards the development of an
increasingly competitive, innovative and
digital economy.
By thinking digital, consumers can
embrace ICT in their daily lives, for
example in the innovative approaches
to education, healthcare, transport and
work that have been laid out within
this report. As consumers increasingly
realise the benefits of digital, including
cheaper, faster, better and more
personalised services, they will be able
to drive and encourage greater adoption
and integrate these services into their
lives. Consumers that adopt innovative
ICT services early can start accelerating
this transition by co-creating products
and services themselves, continuing to
push business leaders to innovate and
transform their thinking.
Consumers can use their individual and
collective buying power to encourage
companies to innovate and come up
with new solutions to tackle climate
change. By using their respective buying
power, adoption levels will grow and ICT’s
benefits will increasingly be realised. By
reaping the benefits outlined in this report,
https://www.gov.uk/government/news/backclimateaction-tweetathon
26
15
Post Script
This report and analysis was written
based on the Fourth Carbon Budget
figures and recommendations, before
the Fifth Carbon was released on 26
November 2015.
This report acknowledges the updates
in the Fifth Carbon Budget and BT is
excited about the inclusion of behaviour
change in the UK Carbon Strategy and
reduction measures. Behaviour change
can be enabled by ICT, which could help
the UK reduce carbon emissions using
the measures described within this report.
Further analysis into how ICT is integrated
into the Fifth Carbon Budget will change
some of the nature of this analysis.
16
However, the level of carbon reductions
possible in the UK and the great potential
for socio-economic benefits through ICT
will remain the same.
Finally, given the dependencies
between the Fifth Carbon Budget and
Government policies and funding, this
report and the potential of ICT to help
enable further carbon reductions in
nearly all of the UK’s Carbon Strategy
sectors remains critical. ICT can help
enable further reductions in nearly
all sectors and these additional
reductions will be critical as funding
remains volatile.
Methodology and
Assumptions
All data used within the report was
sourced from either publically available
data on BT’s physical infrastructure or
directly from the GeSI SMARTer2030
report, produced in association
with Accenture Strategy. The main
methodologies for each section are
outlined below.
Global extrapolated figures from the
SMARTer2030 report were used for the
ICT enabled global carbon abatement
enabled figures, as well as revenues
and cost savings. For UK specific
data, this was taken directly from the
SMARTer2030 model, as the UK was an
individual country which was analysed
in greater detail in the report.
All SMARTer2030 use cases, with the
exception of Smart Energy, were applied
to the UK context as additional carbon
abatement potential. To determine
which use cases would enable additional
carbon abatement, additive to the
policies and measures outlined by the
CCC in the Carbon Strategy and Carbon
Budgets, a gap analysis was completed.
This analysis cross-referenced the
abatement measures already in place in
the UK and the SMARTer2030 use cases
to determine which could be applied to
increase carbon abatement.
Total UK carbon abatement for each use
case was determined using the figures
from the SMATer2030 report. This total
carbon abatement was split between
Business to Consumer (B2C) enabled
abatement and Business to Business
(B2B) enabled abatement to help to
determine the split for total BT-enabled
abatement. Each of the proportions for
B2C and B2B are listed below in Table
3. These were generated by looking at
the impact area and impact lever within
each use case and specifying B2B or
B2C relationship.
To determine BT market share of carbon
abatement figures, market share was
split between BT B2B and B2C market
shares due to the different types of
physical infrastructure required to serve
each end user group and in response
with how BT is structured as a company.
The generation of total market share for
B2B and B2C levers is outlined below in
Figure 9. Based on market share of each,
these per centages (B2B = 95 per cent,
B2C = 69 per cent) were applied to the
respective B2C / B2B carbon abatement
potentials listed above in Table 3
(see Figure 10).
All detailed carbon abatement
figures, adoption rates and UK
specific data points have been taken
directly from the SMARTer2030 report
and the associated models. Refer
directly to this report and its
assumptions / methodology for any
clarifications required.
Finally, throughout the report, figures in
USD were translated into GBP using the
exchange rate from 16 November 2015
of 1 USD = 0.66 GBP. These figures were
extracted from the SMARTer2030 report
and put into a UK context for this paper.
17
Table 3: B2B/B2C Carbon abatement proportions
Use Case
Smart
Manufacturing
B2C Carbon
Abatement
Justification
100%
0%
Carbon reduction enabled through process automation and engine optimisation.
All emissions have been associated with B2B emissions as they are associated with
improved technology and automation enabled by ICT
Smart Agriculture
33%
67%
Carbon abatement split between B2C and B2B emissions. B2B reductions attributed
to reduction in food waste and fall in energy use required through smart agriculture
(through increased efficiencies). Resource efficiencies enabled through improved access
and provision of information to the farmer have been attributed to B2C reductions
Smart Building
42%
58%
Carbon abatement attributed to reduction in emissions from households and
commercial buildings. All commercial building reductions have been attributed to B2B,
and household reductions to B2C emissions
Smart Energy
100%
0%
Total carbon abatement associated with increase in renewable energy share, decrease
in energy production and decrease in energy loss (through grid efficiencies). All carbon
abatement attributed to ICT technical capabilities, such as smart metering or increased
renewable infrastructure, and are therefore associated with B2B carbon abatement
Smart Logistics
100%
0%
Emissions reductions associated with reduction in freight usage through ICT enabled
capacities such as vehicle maximisation and logistics sharing. Emission reductions
entirely attributed to B2B emissions
Traffic Control and
Optimisation
20%
80%
Emission reductions driven by efficient routes, efficient cars and increased use of
public transport. Efficient routes and public transport associated with B2C emissions
reductions due to increased information provision, and efficient cars associated with
B2B emissions reduction
Connected Private
Transportation
62%
38%
Emission reductions associated with route sharing, car sharing and fall in car
production required. Emission reductions from route sharing and car sharing are
attributed to B2C emissions through increased information access / provision, but
reduction in cars produced are attributed to B2B emissions
E-Work
34%
66%
Emission reductions are associated with fall in commuting, as well as a reduction in
business trips by car and airplane. Emission reductions associated with commuting
associated to B2C emissions, and reductions in business trips by car and plane
attributed to B2B emissions
E-Commerce
0%
100%
Emission reductions due to reduction in consumer travel to shops through online
shopping. All of these emission reductions are attributed to consumer enabled
reduction through B2C infrastructure
E-Health
99%
1%
Total carbon abatement of e-health use case generated from fall in transport used (by
patients) and decreased requirement for infrastructure. Fall in transport associated with
B2C choice to not attend hospital / doctors, and receive treatment / advice by other
means and reduction in infrastructure associated with B2B emission reductions
E-Learning
43%
57%
Total carbon abatement attributed to reduction in transport required for education
(higher and secondary) and company training. B2C abatement associated with
reduction in student travel (secondary and higher education) whereas B2B emissions
attributed to reduction in company training travel requirements (road and air)
50%
Reductions are split between a reduction in number of consumer trips to the bank
required due to improved ICT infrastructure, and also the associated reduction in
employees at the bank required. Reduction in bank trip emissions are attributed to B2C
through provision of new services, and reduction in employees associated with B2B
emission reductions
E-Banking
18
B2B Carbon
Abatement
50%
Figure 9: BT B2B/B2C Infrastructure Methodology
NGA (superfast broadband) B2C Infrastructure (households and SMEs) UK Broadband Infrastructure 69% of B2C infrastructure (NGA + copper) is owned by BT 78% UK premises are covered by NGA (OFCOM, 2014); 61% of this coverage is owned by BT Copper 22% UK premises are covered by copper rather than NGA BT 34% of premises served ONLY by BT Virgin Media 9% of premises served ONLY by Virgin Media Shared coverage 35% of premises are covered by both BT and Virgin BT owned copper 98% copper infrastructure is owned by BT B2B Infrastructure Es9mated 95% of UK businesses use a nearly “ubiquitous” BT network (OFCOM, 2015) Figure 10: BT-Enabled Carbon Abatement Methodology
B2C a4ributed carbon abatement UK specific total carbon abatement B2B a4ributed carbon abatement BT enabled B2C carbon abatement = Total B2C CO2e abatement * 69% Non-­‐BT enabled B2C carbon abatement BT enabled B2B carbon abatement = Total B2B CO2e abatement * 95% Non-­‐BT enabled B2B carbon abatement 19
Disclaimer
The following materials were prepared exclusively for BT by
Accenture Strategy (Division of Accenture plc.). Neither BT nor
Accenture Strategy makes any representations or warranties to
any third party with respect to the information contained in this
report. While reasonable steps have been taken to ensure that
the information in this report is correct, neither BT nor Accenture
Strategy give any warranty or make any representation as to its
accuracy and do not accept any liability for any errors or
omissions. The study should not be used or relied upon by anyone
without independent investigation and analysis and neither BT
nor Accenture Strategy assumes any liability for any such use or
reliance by third parties.
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document are the property of respective owners and may not
be used without their prior written permission.
May 2016